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1. Company Snapshot

1.a. Company Description

First Citizens BancShares, Inc.operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals.The company's deposit products include checking, savings, money market, and time deposit accounts.


Its loan product portfolio comprises commercial construction and land development, commercial mortgage, commercial and industrial, and lease financing loans, as well as small business administration paycheck protection program loans; and consumer loans, such as residential and revolving mortgage, construction and land development, consumer auto, and other consumer loans.The company also offers treasury services products, cardholder and merchant services, wealth management services, and various other products and services; investment products, including annuities, discount brokerage services, and third-party mutual funds, as well as investment management and advisory services; and defined benefit and defined contribution, insurance, private banking, trust, fiduciary, philanthropy, and special asset services.The company provides its products and services through its branch network, as well as through digital banking, telephone banking, and various ATM networks.


As of December 31, 2021, it operated 529 branches in Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, North Carolina, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and West Virginia.First Citizens BancShares, Inc.was founded in 1898 and is headquartered in Raleigh, North Carolina.

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1.b. Last Insights on FCNCA

First Citizens BancShares' recent performance was driven by its strong Q4 earnings report, with quarterly earnings of $51.27 per share beating the Zacks Consensus Estimate of $44.21 per share. The company's revenue and EPS give a sense of how its business performed in the quarter ended December 2025. With a consensus recommendation of "Moderate Buy" from twelve analysts, six rating it a hold, five a buy, and one a strong buy. Additionally, the company faces near-term headwinds, but offers over 15% upside. Its 2026 outlook includes flat net interest income and modest fee growth.

1.c. Company Highlights

2. First Citizens BancShares Beats Expectations with Strong Q4 2025 Earnings

First Citizens BancShares, Inc. reported adjusted earnings per share of $51.27, significantly surpassing estimates of $43.99, and an adjusted ROE of 11.93% for the fourth quarter of 2025. The company's adjusted net income was $648 million, up $6.65 million from the linked quarter, driven by a decline in provision for credit losses. Loans grew $3.2 billion or 2.2% sequentially, while deposits declined $1.1 billion or 1% due to anticipated shifts in off-balance-sheet client funds and seasonal distributions. The company returned $900 million to shareholders through share repurchases.

Publication Date: Jan -25

📋 Highlights
  • Q4 2025 Adjusted EPS and ROE:: $51.27 per share and 11.93% return on equity driven by reduced credit loss provisions.
  • Loan Growth & Deposit Decline:: Loans rose $3.2B (+2.2%), while deposits fell $1.1B (-1%) due to seasonal and off-balance-sheet shifts.
  • Shareholder Returns:: $900M returned via share repurchases in Q4 2025, reflecting active capital allocation strategy.
  • 2026 Net Interest Income Forecast:: Expected to decline to $1.6–1.7B in Q1 and $6.5–6.9B for the year amid Fed rate cuts.
  • Efficiency Ratio & Credit Losses:: Efficiency ratio targets lower 60% range, with net charge-offs of 35–45 bps in 2026 due to elevated credit risks.

Loan and Deposit Growth Outlook

For 2026, the company expects loans to be in the $148 billion to $151 billion range in the first quarter and $153 billion to $157 billion for the full year. Deposits are anticipated to be in the $164 billion to $167 billion range in the first quarter and $181 billion to $186 billion for the full year, representing low to mid-teens percentage growth over 2025. The loan-to-deposit ratio is expected to be around 90%, indicating a relatively stable funding position.

Net Interest Income and Expense Guidance

The company expects net interest income to decline due to interest rate cuts, with a forecast of $1.6 billion to $1.7 billion in the first quarter, and $6.5 billion to $6.9 billion for the full year. Adjusted noninterest income is expected to be $500 million to $530 million in the first quarter and $2.1 billion to $2.2 billion for the full year, driven by growth in the rail business and continued momentum in wealth and deposit businesses. Adjusted noninterest expense is expected to be $1.34 billion to $1.38 billion in the first quarter and $5.37 billion to $5.46 billion for the full year, with a low to mid-single-digit percentage increase from 2025.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.12, and a Dividend Yield of 0.39%, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 5.0%, which is slightly higher than the industry average. Considering the company's strong Q4 2025 earnings and guidance for 2026, the stock may be poised for further growth.

Credit Losses and Efficiency Ratio

The company expects credit losses to be elevated, with net charge-offs in the range of 35 to 45 basis points for both the first quarter and the full year. The efficiency ratio is expected to be in the lower 60% range in 2026, indicating a relatively efficient operation. The company aims to return to positive operating leverage as the interest rate environment normalizes.

3. NewsRoom

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First Citizens Bank Names Robert Horne Middle Market Banking Director in Florida

14:00

Source: prnewswire.com

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FCNCA Investors Have Opportunity to Join First Citizens BancShares, Inc. Fraud Investigation with the Schall Law Firm

Feb -02

Source: businesswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of First Citizens BancShares, Inc. - FCNCA

Jan -29

Source: prnewswire.com

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These Analysts Slash Their Forecasts On First Citizens BancShares Following Q4 Results

Jan -26

Source: benzinga.com

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First Citizens BancShares: Undervalued, But Far From Ideally Placed

Jan -26

Source: seekingalpha.com

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First Citizens BancShares, Inc. (NASDAQ:FCNCA) Given Average Rating of “Moderate Buy” by Brokerages

Jan -26

Source: defenseworld.net

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First Citizens BancShares (NASDAQ:FCNCA) Shares Gap Down – Time to Sell?

Jan -25

Source: defenseworld.net

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First Citizens: Margin Pressure Comes Into Focus (Downgrade)

Jan -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.80%)

6. Segments

General Banking

Expected Growth: 2.5%

General Banking is less likely to experience high growth due to its traditional nature, but it remains stable and is less volatile. The expected growth is slightly lower than the global hypothesis due to the mature market and competition.

Silicon Valley Banking

Expected Growth: 4.0%

Silicon Valley Banking is expected to grow faster than the global average due to the high growth potential of the tech industry. The demand for specialized banking services is increasing as the industry expands.

Commercial Banking

Expected Growth: 3.0%

Commercial Banking is expected to grow slightly above the global average due to the ongoing demand for corporate lending and treasury services. The growth is supported by the overall economic conditions and corporate activities.

Corporate

Expected Growth: 3.5%

Corporate is expected to grow faster than the global average due to the increasing demand for investment banking and treasury services. The growth is supported by the ongoing corporate activities and market conditions.

Rail

Expected Growth: 2.0%

Rail is expected to grow at a slower rate than the global average due to the mature nature of the industry and the potential for fluctuations in demand. The growth is supported by the ongoing demand for rail transportation, but is limited by the industry's maturity.

7. Detailed Products

Commercial Banking

First Citizens BancShares, Inc. offers a range of commercial banking products and services to businesses, including cash management, payroll services, and trade finance.

Consumer Banking

The company provides consumer banking products and services, including checking and savings accounts, credit cards, mortgages, and personal loans.

Wealth Management

First Citizens BancShares, Inc. offers wealth management services, including investment management, financial planning, and trust services.

Mortgage Banking

The company provides mortgage banking services, including origination, servicing, and securitization of mortgage loans.

Treasury Management

First Citizens BancShares, Inc. offers treasury management services, including cash management, account reconciliation, and fraud prevention.

Capital Markets

The company provides capital markets services, including underwriting, advisory services, and trading of securities.

8. First Citizens BancShares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

First Citizens BancShares, Inc. operates in a traditional banking industry where substitutes such as credit unions, online banks, and fintech companies exist. However, the company's diversified financial services and strong customer relationships mitigate the threat.

Bargaining Power Of Customers

The company has a large customer base and a wide range of financial services, which reduces the bargaining power of individual customers. Additionally, customers are often locked into long-term relationships with the bank, reducing their ability to negotiate.

Bargaining Power Of Suppliers

The company has a large and diversified supplier base, which reduces the bargaining power of any individual supplier. Additionally, the company has a strong financial position, which allows it to negotiate favorable terms with suppliers.

Threat Of New Entrants

The banking industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and regulatory hurdles. This reduces the threat of new entrants.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. First Citizens BancShares, Inc. faces intense rivalry from other banks and financial institutions, particularly in its core markets.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.50%
Debt Cost 18.19%
Equity Weight 37.50%
Equity Cost 7.58%
WACC 14.21%
Leverage 166.64%

11. Quality Control: First Citizens BancShares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Westamerica

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 8.5

Yield: 7.0

Momentum: 3.0

Volatility: 8.7

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PNC Financial Services Group

A-Score: 6.5/10

Value: 5.7

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

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M&T Bank

A-Score: 6.2/10

Value: 6.5

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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OpenBank

A-Score: 5.7/10

Value: 6.6

Growth: 6.9

Quality: 5.8

Yield: 7.0

Momentum: 1.5

Volatility: 6.7

1-Year Total Return ->

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Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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First Citizens BancShares

A-Score: 4.9/10

Value: 5.3

Growth: 9.8

Quality: 4.3

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2017.13$

Current Price

2017.13$

Potential

-0.00%

Expected Cash-Flows